Business round encourages coffee processors to decarbonize

San José, March 28, 2019.- Coffee processing organizations participated in the Business Roundtable denominated, "Promoting Low Emission Coffee Production, Efficiency and Environmental Sustainability," which was organized by the Coffee Institute of Costa Rica (ICAFE), the Central American Bank for Economic Integration (CABEI) and the German Cooperation Agency (GIZ).The event offered a space for the presentation of coffee processing technologies and alternatives of existing financing in the country in order to promote investments in sustainable technologies that foster low Greenhouse Gas (GHG) emissions.Event attendees included a wide range of technology providers that promote efficiency in coffee sector processes, highlighting the benefits of such equipment as centriflux, oven construction materials, composting machines and guardiola systems, among others. Likewise, more than five intermediary financial institutions that channel CABEI funds were present; they presented credit alternatives for investments in the sector.ICAFE Technical Manager, Mr. Carlos Fonseca stated that, "The coffee sector has a high potential for reducing emissions, but many processing centers and producers lack the capital to make the necessary investments. Within the framework of the NAMA Coffee Support Project (NSP Café), technological advice and incentive mechanisms for the coffee sector are offered, including  a Financing Program with CABEI, which was launched in August 2018 and has a US$8.2 million available to promote investments in technologies and practices that reduce GHG emissions and improve water and energy consumption." The funds available in the Financing Program come from CABEI with a contribution of EUR 2 million from the German Government and the British Government, through the NAMA Facility in order to encourage the application of favorable conditions, particularly a low interest rate for a maximum term of 10 years.CABEI Country Manager for Costa Rica, Mauricio Chacón stated that, "For CABEI, it is very important to support the coffee sector especially the small and medium producer and beneficiary through this credit line available in the country's financial institutions. Likewise, aware that long-term efforts will result in a better standard of living for the Central American population, CABEI promotes the adoption of environmental measures and policies. With the exemplification of actions in Costa Rica, the Bank is expanding its efforts so that short-term financing programs for the sustainable production of the coffee sector can be established throughout the region." To apply for a loan under the NAMA Coffee Financing Program, interested parties must provide details about the investment to be made and the GHG reductions, electricity consumption and/or water that are to be achieved, which will be verified by ICAFE, who will be able to advise on the formulation of a reduction plan based on the updated GHG inventories. Subsequently, those interested can access the financial institution of their confidence to apply for the credit. CABEI and ICAFE cooperate to facilitate the collection of coffee climate data As part of the activities developed in this event, the signing of a non-reimbursable technical cooperation agreement for US$60,000 was made between CABEI and ICAFE to expand the digital application CRCAFÉ 1.0 to its 2.0 version. In addition to the current record of the presence of diseases such as rust, the dosage of agrochemicals, the application of fertilizers and the amount of shade trees in the coffee plantation, among others, the interaction with the processing centers and producers will be maximized by adding agronomic modules.Mr. Chacon commented that, "Through cooperation with ICAFE, CABEI contributes to the development of the agroindustrial and financial sectors, fostering that national companies in the sectors can actively participate in projects that contribute to the mitigation of the effects of climate change. The verification of reductions in GHG emissions that can be obtained through the enhanced virtual tool CRCAFE 2.0 will enable ICAFE to generate data and estimates that facilitate credit analysis, crop insurance, cost studies, performance and impact evaluations and monitoring of coffee plantations and processing centers."The modules added in CRCAFE 2.0 will help coffee producers estimate their harvest by using the methodology validated by ICAFE, streamlining the preparation of GHG emission inventories for the centers in order to facilitate the traceability of coffee, optimizing ICAFE's work. About NAMA Café and NSP Café: NAMA Café de Costa Rica is a national initiative implemented jointly by the Ministry of Agriculture and Livestock (MAG), the Ministry of Environment and Energy (MINAE) and the Coffee Institute (ICAFE) in order to reduce GHG emissions generated during coffee production and processing and foster sustainable water and energy use.The project receives support from the Costa Rican NAMA Coffee Support Project (NSP Café), which is financed by the NAMA Facility; a joint fund of the German Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU) and the British Department of Business, Energy and Industrial Strategy (BEIS) that is implemented by GIZ.

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